The National Housing Federation has said Newham's plans to relocate tenants out of London "is a desperate move which demonstrates the scale of the housing crisis".
It urged the Government and the London Mayor to take urgent action.
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The 34-year-old from Coulsdon in Surrey died during the private party in Headley in the early hours of Monday, Surrey Police said.
The Home Office made the arrests at various restaurants across London on July 4.
Mayor of Newham Sir Robin Wales criticised the International Olympic Committee on the fourth anniversary of the opening ceremony.